Comparable RevPAR for the domestic portfolio was $163.90, an increase
of 1.7% on a Pro-forma basis

Comparable RevPAR was $156.34, an increase of 1.4% on a Pro-forma basis

Net income and net income attributable to stockholders were $2,350
million, including an income tax benefit of $2,288 million resulting
from the REIT conversion

Adjusted EBITDA was $177 million, an increase of 4.1% on a Pro-forma
basis

Adjusted FFO attributable to stockholders was $138 million, an
increase of 7.8% on a Pro-forma basis

Diluted earnings per share was $11.02

Diluted Adjusted FFO per share was $0.64

Comparable Hotel Adjusted EBITDA margin was 25.9%, a decrease of 10
bps on a Pro-forma basis

Thomas J. Baltimore, Jr., Chairman, President and Chief Executive
Officer, stated, “We are very pleased with our first quarter results,
which came in ahead of expectations both on top line and bottom line,
clearly demonstrating the benefit of owning a geographically diverse
portfolio of high quality assets with multiple levers of demand. I am
thrilled with the progress our team has made after just four months
operating as an independent public company with our attention keenly
focused on creating value for our shareholders. On the asset management
front, we continue to build out our team as we implement aggressive
asset management strategies to help narrow the margin gap that exists
between Park and our peers. Separately, we continue to make progress on
our ROI projects and our team is formulating a strategic plan to
determine the scope of our non-core asset sale program given our
intention to recycle the bottom 10% to 15% of our portfolio over the
next several years.”

Comparable RevPAR increased 1.4% on a Pro-forma basis, attributable to a
1.4% increase in rate, with occupancy remaining relatively flat. Across
Park’s major markets:

Washington, D.C. was the best performer with RevPAR growth of 10.0%
attributable to increased demand during the inauguration and related
political events;

Chicago showed RevPAR growth of 8.1% with an increase in both rate and
occupancy primarily from increased group business and renovation
disruptions in 2016 at the Hilton Chicago; and

Hawaii generated RevPAR growth of 4.1% due to an increase in rate
driven by an increase in group business.

The solid performance was primarily attributable to increases in group
business, which accounted for approximately one-third of revenues. Group
rooms revenue for the quarter increased by 7.1%, led by the following
properties:

Hilton Hawaiian Village Waikiki Beach Resort increased 28.4%

Parc 55 San Francisco – a Hilton Hotel increased 23.8%

Hilton Chicago increased 22.2%; and

Hilton Orlando Bonnet Creek increased 16.1%.

2017 First Quarter Operating Results: Top 10
Hotels

RevPAR for Park’s Top 10 Hotels, which accounts for approximately 66% of
Hotel Adjusted EBITDA, grew 1.8% on a Pro-forma basis, driven by a 1.0
percentage point increase in occupancy and a 0.5% increase in rate.
Within the Top 10 Hotels:

Hilton Chicago was the best performing hotel with RevPAR growth of
17.5% from strong group demand and renovation disruptions in 2016;

Hilton Orlando Bonnet Creek had RevPAR growth of 8.7%;

Parc 55 San Francisco – a Hilton Hotel had RevPAR growth of 4.2%;

Hilton Hawaiian Village Waikiki Beach Resort had RevPAR growth of
4.1%; and

New York Hilton Midtown had RevPAR growth of 2.9%.

Hilton San Francisco Union Square was the weakest performer with a
decrease in RevPAR of 8.0%, due to ongoing renovations and a tough
comparable period in 2017 due to the Super Bowl in 2016.

In January 2017, in order to comply with requirements related to Park’s
declaration of intent to be taxed as a REIT, Park’s Board of Directors
declared an Earnings and Profit (“E&P”) dividend of $2.79 per share,
payable in cash and shares of its common stock, to stockholders of
record as of January 19, 2017. The E&P dividend was paid on March 9,
2017 and consisted of $110 million in cash and the issuance of 16.6
million shares of Park’s common stock.

In February 2017, Park’s Board of Directors declared a first quarter
2017 cash dividend of $0.43 per share to stockholders of record as of
March 31, 2017. The first quarter 2017 cash dividend was paid on April
17, 2017.

On April 28th 2017, Park’s Board of Directors declared a
second quarter 2017 cash dividend of $0.43 per share to stockholders of
record as of June 30, 2017. The second quarter 2017 cash dividend is to
be paid on July 17, 2017. All future dividends are subject to approval
by Park’s Board of Directors.

Full Year 2017 Outlook

The Company has updated its 2017 guidance that was previously provided
in connection with the reporting of its 2016 results in March 2017. Park
expects the full year 2017 operating results to be as follows:

(unaudited, dollars in millions, except per share amounts)

Metric

Low

High

Comparable RevPAR Growth

0.0%

2.0%

Net income

$

250

$

277

Net income attributable to stockholders

$

245

$

272

Diluted earnings per share

$

1.14

$

1.27

Adjusted EBITDA

$

735

$

765

Comparable Hotel Adjusted EBITDA margin change

(80)

bps

0

bps

Adjusted FFO attributable to stockholders per diluted share

$

2.65

$

2.77

Full year 2017 guidance is based in part on the following assumptions:

General and administrative expenses are projected to be $45 million,
excluding $12 million of non-cash share-based compensation expense and
$11 million of transition costs;

Fully diluted weighted average shares is expected to be 214.5 million;

Excludes an income tax benefit of $2,288 million recognized in the
first quarter of 2017 resulting from the derecognition of deferred tax
liabilities upon Park’s declaration of intent to be taxed as a REIT;

Due to the transfer of a significant number of rooms at the Hilton
Waikoloa Village and Embassy Suites Washington DC Georgetown to Hilton
Grand Vacations, the results from these hotels are excluded from
Park’s comparable results in 2017;

The delay of the transfer of rooms at the Hilton Waikoloa Village
until the fourth quarter of 2017; and

In conjunction with this release, Park has furnished a financial
supplement with additional disclosures on its website. Visit www.pkhotelsandresorts.com
for more information. Park has no obligation to update any of the
information provided to conform to actual results or changes in Park’s
portfolio, capital structure or future expectations.

Conference Call

Park will host a conference call for investors and other interested
parties to discuss first quarter results on May 4, 2017 beginning at
10:00 a.m. Eastern Time.

Participants may listen to the live webcast by logging onto the Investor
Relations section of the website at www.pkhotelsandresorts.com.
Alternatively, participants may listen to the live call by dialing (877)
876-9177 in the United States or (785) 424-1667 internationally, and
requesting Park Hotels & Resorts’ First Quarter 2017 Earnings Conference
Call. Participants are encouraged to dial into the call or link to the
webcast at least ten minutes prior to the scheduled start time.

A replay and transcript of the webcast will be available within 24 hours
after the live event on the Investor Relations section of Park’s website
and will be available through June 1, 2017.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include, but are not limited to, statements
related to Park’s current expectations regarding the performance of its
business, financial results, liquidity and capital resources, the
effects of competition and other non-historical statements.
Forward-looking statements include all statements that are not
historical facts and, in some cases, can be identified by the use of
forward-looking terminology such as the words “outlook,” “believes,”
“expects,” “potential,” “continues,” “may,” “will,” “should,” “could,”
“seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates” or the negative version of these words or
other comparable words. Forward-looking statements involve risks,
uncertainties and assumptions. Actual results may differ materially from
those expressed in these forward-looking statements. You should not put
undue reliance on any forward-looking statements in this press release.
Additional factors that could cause Park’s results to differ materially
from those described in the forward-looking statements can be found
under the sections entitled “Forward-Looking Statements,” “Risk Factors”
and “Management's Discussion and Analysis of Financial Condition and
Results of Operations" (or similar captions) in Park’s Annual Report on
Form 10-K for the year ended December 31, 2016, filed with the SEC, as
such factors may be updated from time to time in Park’s periodic filings
with the SEC, which are accessible on the SEC’s website at www.sec.gov.
Forward-looking statements speak only as of the date on which they are
made and Park undertakes no obligation to update or revise publicly any
guidance or other forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required by law.

Non-GAAP Financial Measures

Park presents certain non-GAAP financial measures in this press release,
including NAREIT FFO attributable to stockholders Adjusted FFO
attributable to stockholders, EBITDA, Adjusted EBITDA, Hotel Adjusted
EBITDA, and Hotel Adjusted EBITDA margin. These non-GAAP financial
measures should be considered along with, but not as alternatives to,
net income (loss) as a measure of its operating performance. Please see
the schedules included in this press release including the “Definitions”
section for additional information and reconciliations of such non-GAAP
financial measures.

Pro-Forma Financial Information

Certain financial measures and other information have been adjusted for
Park’s historical debt and related balances and interest expense to give
the net effect to financing transactions that were completed prior to
spin-off, incremental fees based on the terms of the post spin-off
management agreements, adjustments to income tax expense based on Park’s
post spin-off REIT tax structure, the removal of costs incurred related
to the spin-off and the establishment of Park as a separate public
company and the estimated excise taxes on certain REIT leases. Further
adjustments have been made to reflect the effects of hotels disposed of
or acquired during the periods presented. When presenting such
information, the amounts are identified as “Pro-forma.”

About Park

On January 3, 2017, Hilton Worldwide Holdings Inc. completed the
spin-off of a portfolio of hotels and resorts that established Park as
an independent, publicly traded company. Park began publicly trading on
the New York Stock Exchange as an independent company on January 4,
2017. Park is a leading lodging REIT with a diverse portfolio of hotels
and resorts with significant underlying real estate value. Park’s
portfolio consists of 67 premium-branded hotels and resorts with over
35,000 rooms located in prime United States and international markets
with high barriers to entry.

PARK HOTELS & RESORTS INC.

CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions, except share and per share data)

March 31,

December 31,

2017

2016

ASSETS

Property and equipment, net

$

8,516

$

8,541

Investments in affiliates

82

81

Goodwill

604

604

Intangibles, net

43

44

Cash and cash equivalents

318

337

Restricted cash

18

13

Accounts receivable, net

180

130

Prepaid expenses

51

58

Other assets

28

26

TOTAL ASSETS

$

9,840

$

9,834

LIABILITIES AND EQUITY

Liabilities

Debt

$

3,012

$

3,012

Accounts payable and accrued expenses

174

167

Due to hotel manager

125

91

Due to Hilton Grand Vacations

210

210

Deferred income tax liabilities

146

2,437

Other liabilities

202

94

Total liabilities

3,869

6,011

Equity

Common stock, par value $0.01 per share, 6,000,000,000 shares
authorized, 214,767,295 shares issued and outstanding as of March
31, 2017

2

Additional paid-in capital

3,820

—

Retained earnings

2,258

—

Accumulated other comprehensive loss

(60)

(67)

Net Parent investment

—

3,939

Total stockholders' equity

6,020

3,872

Noncontrolling interests

(49)

(49)

Total equity

5,971

3,823

TOTAL LIABILITIES AND EQUITY

$

9,840

$

9,834

PARK HOTELS & RESORTS INC.

CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions, except per share data)

Three Months Ended

March 31,

2017

2016

Revenues

Rooms

$

432

$

429

Food and beverage

192

180

Other

60

52

Total revenues

684

661

Operating expenses

Rooms

114

114

Food and beverage

131

127

Other departmental and support

177

165

Other property-level

46

45

Management and franchise fees

34

26

Impairment loss

—

15

Depreciation and amortization

70

73

Corporate and other

18

16

Total expenses

590

581

Operating income

94

80

Interest expense

(30)

(46)

Equity in earnings from investments in affiliates

4

3

Gain on foreign currency transactions

1

—

Income before income taxes

69

37

Income tax benefit (expense)

2,281

(14)

Net income

2,350

23

Net income attributable to noncontrolling interests

—

(1)

Net income attributable to stockholders

$

2,350

$

22

Earnings per share:

Earnings per share - Basic

$

11.65

$

0.11

Earnings per share - Diluted

$

11.02

$

0.11

Weighted average shares outstanding - Basic

202

198

Weighted average shares outstanding - Diluted

213

198

Dividends declared per common share

$

0.43

$

—

PARK HOTELS & RESORTS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

EBITDA, ADJUSTED EBITDA AND PRO-FORMA ADJUSTED EBITDA

(unaudited, in millions)

Three Months Ended

March 31,

2017

2016

Net income

$

2,350

$

23

Interest expense

30

46

Income tax (benefit) expense

(2,281)

14

Depreciation and amortization expense

70

73

Interest expense, income tax and depreciation and amortization
included in equity in earnings from investments in affiliates

5

6

EBITDA

174

162

Gain on foreign currency transactions

(1)

—

Share based compensation expense

3

—

Impairment loss

—

15

Transition costs

1

—

Other adjustment items

—

3

Adjusted EBITDA

177

180

Less: Spin-off adjustments(1)

—

(10)

Pro-forma Adjusted EBITDA

$

177

$

170

____________________________

(1)

Spin-off adjustments include adjustments for incremental fees based
on the terms of the post spin-off management agreements and
estimated non-income taxes on certain REIT leases.

(1) Includes EBITDA from Park's laundry business and
general and administrative expenses.

Three Months Ended

March 31,

2017

2016

Total Revenue

$

684

$

661

Less: Revenue from hotels disposed of

—

3

Less: Revenue from laundry facilities

3

3

Pro-forma Hotel Revenue

681

655

Add: Spin-off adjustments(1)

—

5

Less: Non-comparable hotels

45

42

Pro-forma Comparable Hotel Revenue

$

636

$

618

(1) Includes $5 million of allocated costs previously
excluded from other hotel revenue for services provided to Hilton
Grand Vacations ("HGV") at Hilton Hawaiian Village Beach Resort.
In connection with the spin-off, Park entered into a services
agreement with HGV.

Represents the derecognition of deferred tax liabilities upon Park’s
declaration of intent to be taxed as a REIT.

(2)

Spin-off adjustments include adjustments for Park’s historical debt
and related balances and interest expense to give the net effect to
financing transactions that were completed prior to spin-off,
incremental fees based on the terms of the post spin-off management
agreements, adjustments to income tax expense based on Park’s post
spin-off REIT tax structure and estimated non-income taxes on
certain REIT leases.

(3)

For 2016, per share amounts were calculated using the number of
shares of common stock outstanding upon the completion of the
spin-off. Per share amounts are calculated based on unrounded
numbers.

(4)

For 2016, amounts are calculated on a Pro-forma basis.

PARK HOTELS & RESORTS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

2017 OUTLOOK – EBITDA AND ADJUSTED EBITDA

(unaudited, in millions)

Year Ending

December 31, 2017

Low Case

High Case

Net income(1)

$

250

$

277

Interest income

(2

)

(2

)

Interest expense

125

125

Income tax expense(1)

26

28

Depreciation and amortization expense

292

293

Interest expense, income tax and depreciation and amortization
included in equity in earnings from investments in affiliates

22

22

EBITDA

713

743

Gain on foreign currency transactions

(1

)

(1

)

Share-based compensation expense

12

12

Transition costs

11

11

Adjusted EBITDA

$

735

$

765

_____________________________

(1)

Excludes an income tax benefit of $2,288 million in the first
quarter of 2017 resulting from the derecognition of deferred tax
liabilities upon Park’s declaration of intent to be taxed as a REIT.

PARK HOTELS & RESORTS INC.

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

2017 OUTLOOK – NAREIT FFO ATTRIBUTABLE TO STOCKHOLDERS AND

ADJUSTED FFO ATTRIBUTABLE TO STOCKHOLDERS

(unaudited, in millions except per share amounts)

Year Ending

December 31, 2017

Low Case

High Case

Net income attributable to stockholders(1)

$

245

$

272

Depreciation and amortization expense

288

288

Equity investment adjustments:

Equity in earnings from investments in affiliates

(22

)

(22

)

Pro rata FFO of equity investments

35

35

NAREIT FFO attributable to stockholders(1)

546

573

Gain on foreign currency transactions

(1

)

(1

)

Transition costs

11

11

Share-based compensation expense

12

12

Adjusted FFO attributable to stockholders(1)

$

568

$

595

Adjusted FFO attributable to stockholders per diluted share(1)

$

2.65

$

2.77

Weighted average diluted shares outstanding

214.5

214.5

_____________________________

(1)

Excludes an income tax benefit of $2,288 million in the first
quarter of 2017 resulting from the derecognition of deferred tax
liabilities upon Park’s declaration of intent to be taxed as a REIT.

Earnings before interest expense, taxes and depreciation and
amortization (“EBITDA”), presented herein, reflects net income (loss),
excluding interest expense, a provision for income taxes and
depreciation and amortization. The Company considers EBITDA to be a
useful measure for investors in evaluating and facilitating comparisons
of its operating performance between periods and between REITs by
removing the impact of the Company’s capital structure (primarily
interest expense) and asset base (primarily depreciation and
amortization) from its operating results.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as
previously defined, further adjusted to exclude gains, losses and
expenses in connection with: (i) foreign currency transactions; (ii)
share-based compensation; (iii) non-cash impairment losses; (iv)
transition costs related to the Company’s establishment as an
independent, publicly traded company; (v) asset dispositions for both
consolidated and unconsolidated investments; (vi) debt
restructurings/retirements; (vii) severance and relocation; and (viii)
other gains and losses that management believes are not representative
of the Company’s current or future operating performance.

Hotel Adjusted EBITDA measures property-level results before debt
service, depreciation and corporate expenses of the Company’s
consolidated hotels, including both comparable and non-comparable hotels
but excluding hotels owned by unconsolidated affiliates, and is a key
measure of the Company’s profitability. The Company presents Hotel
Adjusted EBITDA to help the Company and its investors evaluate the
ongoing operating performance of the Company’s consolidated hotels.

Hotel Adjusted EBITDA margin, is calculated as Hotel Adjusted EBITDA as
a percentage of Total Hotel Revenue.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA
margin are not recognized terms under United States (“U.S.”) GAAP and
should not be considered as alternatives to net income (loss) or other
measures of financial performance or liquidity derived in accordance
with U.S. GAAP. In addition, the Company’s definitions of EBITDA,
Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin
may not be comparable to similarly titled measures of other companies.

The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA
and Hotel Adjusted EBITDA margin provide useful information to investors
about the Company and its financial condition and results of operations
for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted
EBITDA and Hotel Adjusted EBITDA margin are among the measures used by
the Company’s management team to evaluate its operating performance and
make day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA,
Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently
used by securities analysts, investors and other interested parties as a
common performance measure to compare results or estimate valuations
across companies in the industry.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA
margin have limitations as analytical tools and should not be considered
either in isolation or as a substitute for net income (loss) or other
methods of analyzing the Company’s operating performance and results as
reported under U.S. GAAP.

NAREIT FFO attributable to stockholders, presented herein, is calculated
as net income (loss) attributable to stockholders (calculated in
accordance with U.S. GAAP), excluding gains (losses) from sales of real
estate, the cumulative effect of changes in accounting principles, real
estate-related depreciation, amortization and impairments and
adjustments for unconsolidated joint ventures. Adjustments for
unconsolidated joint ventures are calculated to reflect the Company’s
pro rata share of the FFO of those entities on the same basis. The
Company calculates NAREIT FFO attributable to stockholders for a given
operating period in accordance with the guidelines of the National
Association of Real Estate Investment Trusts (“NAREIT”). As noted by
NAREIT in its April 2002 “White Paper on Funds From Operations,” since
real estate values historically have risen or fallen with market
conditions, many industry investors have considered presentation of
operating results for real estate companies that use historical cost
accounting to be insufficient by themselves. For these reasons, NAREIT
adopted the FFO metric in order to promote an industry-wide measure of
REIT operating performance.

Adjusted FFO attributable to stockholders, presented herein, is NAREIT
FFO attributable to stockholders, as previously defined, further
adjusted to exclude: (i) gains or losses on foreign currency
transactions; (ii) litigation gains and losses outside the ordinary
course of business; (iii) transition costs related to the Company’s
establishment as an independent, publicly traded company; (iv)
share-based compensation expense; and (v) other gains and losses that
management believes are not representative of the Company’s current or
future operating performance.

NAREIT FFO attributable to stockholders and Adjusted FFO attributable to
stockholders are not recognized terms under U.S. GAAP and should not be
considered as alternatives to net income (loss) or other measures of
financial performance or liquidity derived in accordance with U.S. GAAP.
In addition, the Company’s definitions of NAREIT FFO attributable to
stockholders and Adjusted FFO attributable to stockholders may not be
comparable to similarly titled measures of other companies.

The Company believes that NAREIT FFO attributable to stockholders and
Adjusted FFO attributable to stockholders, provide useful information to
investors about the Company and its financial condition and results of
operations for the following reasons: (i) these measures are among the
measures used by the Company’s management team to evaluate its operating
performance and make day-to-day operating decisions; and (ii) these
measures are frequently used by securities analysts, investors and other
interested parties as a common performance measure to compare results or
estimate valuations across companies in the industry.

NAREIT FFO attributable to stockholders and Adjusted FFO attributable to
stockholders have limitations as analytical tools and should not be
considered either in isolation or as a substitute for net income (loss),
cash flow or other methods of analyzing results as reported under U.S.
GAAP.

NAREIT FFO per share – diluted, presented herein, is calculated as the
Company’s NAREIT FFO, as previously defined, divided by the number of
fully diluted shares outstanding during a period.

Adjusted FFO per share – diluted, presented herein, is Adjusted FFO per
share, as previously defined, divided by the number of fully diluted
shares outstanding during a period.

Occupancy

Occupancy represents the total number of room nights sold divided by the
total number of room nights available at a hotel or group of hotels.
Occupancy measures the utilization of the Company’s hotels’ available
capacity. Management uses occupancy to gauge demand at a specific hotel
or group of hotels in a given period. Occupancy levels also help
management determine achievable Average Daily Rate (“ADR”) levels as
demand for rooms increases or decreases.

Average Daily Rate

ADR represents rooms revenue divided by total number of room nights sold
in a given period. ADR measures average room price attained by a hotel
and ADR trends provide useful information concerning the pricing
environment and the nature of the customer base of a hotel or group of
hotels. ADR is a commonly used performance measure in the hotel
industry, and management uses ADR to assess pricing levels that the
Company is able to generate by type of customer, as changes in rates
have a more pronounced effect on overall revenues and incremental
profitability than changes in occupancy, as described above.

Revenue per Available Room

Revenue per Available Room (“RevPAR”) represents rooms revenue divided
by total number of room nights available to guests for a given
period. Management considers RevPAR to be a meaningful indicator of the
Company’s performance as it provides a metric correlated to two primary
and key factors of operations at a hotel or group of hotels: occupancy
and ADR. RevPAR is also a useful indicator in measuring performance over
comparable periods for comparable hotels.

References to RevPAR and ADR are presented on a currency neutral basis
(prior periods are reflected using current period exchange rates),
unless otherwise noted.

Comparable Data

The Company presents certain data for its hotels on a comparable hotel
basis as supplemental information for investors. The Company defines its
comparable hotels as those that: (i) were active and operating in its
system since January 1st of the previous year; and (ii) have not
sustained substantial property damage, business interruption, undergone
large-scale capital projects or for which comparable results are not
available. The Company presents comparable hotel results to help the
Company and its investors evaluate the ongoing operating performance of
its comparable hotels. Due to the conversion, or planned conversions, of
a significant number of rooms at the Hilton Waikoloa Village in 2017 and
Embassy Suites Washington D.C. Georgetown in 2016 to HGV timeshare
units, the results from these properties were excluded from comparable
hotels.